Australian recession fears?
Discussion
We're in the midst of house hunting over here in Melbourne at the moment so along with various viewings this weekend we checked out a couple of auctions near to the places we were looking at to see what they went for.
Out of three auctions we watched not a single one of them actually sold, all were passed in..........
Quite painfull watching the auctioneer struggle through desperately trying to paint the picture that the bottom has not completely fallen out of the market like it appears to have.
Good time to buy methinks, could turn back around again if interest rates drop but to be honest i don't see that happening as quickly as it possibly needs to....
Out of three auctions we watched not a single one of them actually sold, all were passed in..........
Quite painfull watching the auctioneer struggle through desperately trying to paint the picture that the bottom has not completely fallen out of the market like it appears to have.
Good time to buy methinks, could turn back around again if interest rates drop but to be honest i don't see that happening as quickly as it possibly needs to....
Agree completely. I'm in Canberra and we're in the process of buying as well and went to look at a few auction and open house over the weekend. Lots of people kicking the doors but no one is buying at the moment. Its changed over the period of about 3 months from a seller's market to a buyer's market. Lots of people still wants to upgrade their home but they have to sell their own place first and they are just not shifting at the moment.
The problem is seller's expectation, they are still want to get as much as what they have expected when they first started thinking about selling, but the market has moved a lot in 3 months. A few estate agent friends has said if you don't need to buy now just hold on to your money and wait 6 months because prices are not going anywhere but down. They think the prices has dropped about 10% since beginning of the year and in some cases its been more.
The problem is seller's expectation, they are still want to get as much as what they have expected when they first started thinking about selling, but the market has moved a lot in 3 months. A few estate agent friends has said if you don't need to buy now just hold on to your money and wait 6 months because prices are not going anywhere but down. They think the prices has dropped about 10% since beginning of the year and in some cases its been more.
Its the same in Sydney, we're also looking and have been spectators at auctions where houses get passed in more frequently than not these days and then just sit on the open market with continuous reductions, bidders just aren't prepared to pay the high prices anymore. Agree though, sellers seem to have unrealistic expectations & estate agents are trying very hard to convince people to purchase... It certainly feels like it's a buyers market, especially if you have a good deposit and nothing to sell.
If the interest rate drops then it'll take off again I reckon but it's not going to be a for a while yet - all the talk of interest rate reduction is a bit of PR to keep things buoyant for longer.
What's the best interest rate people have found out there? Bankwest seem to be pretty strong at the moment with a good offer but the monthly fees at almost every bank is a shocker.
Interestingly though, fuel prices reduced last week!
If the interest rate drops then it'll take off again I reckon but it's not going to be a for a while yet - all the talk of interest rate reduction is a bit of PR to keep things buoyant for longer.
What's the best interest rate people have found out there? Bankwest seem to be pretty strong at the moment with a good offer but the monthly fees at almost every bank is a shocker.
Interestingly though, fuel prices reduced last week!
And it is interesting to note that the upper end of the market (Mosman, eastern suburbs etc) in Sydney is still increasing. I think Tamarama had around 13% growth last year.
Very scattered really.
To be honest, if there is a worldwide recession it will hit. If there isn't we won't have one. The gov't of the day has nothing to do with it basically.
That said, we've had a 14% growth in profits for our company for the past year over a supposedly lean time (housing industry) so it can't be all doom and gloom.
Very scattered really.
To be honest, if there is a worldwide recession it will hit. If there isn't we won't have one. The gov't of the day has nothing to do with it basically.
That said, we've had a 14% growth in profits for our company for the past year over a supposedly lean time (housing industry) so it can't be all doom and gloom.
Definatly noticeable there is a big difference between sellers expectations and what people are prepared to pay.
One place we saw go through auction was a nice 4br detached in Cheltenham, quite near the beach, big garden, pleasant enough area in good condition and well presented. Typical suburban family home basically. It only got a single bid of $400k which the agents then followed with a vendor bid of $500k and at that point all interest stopped.
Wonder how long it will be before things start to come a bit more into alignment if sellers will start realising they are not going to get as much as they would have 6 months ago and things start to move again.
One place we saw go through auction was a nice 4br detached in Cheltenham, quite near the beach, big garden, pleasant enough area in good condition and well presented. Typical suburban family home basically. It only got a single bid of $400k which the agents then followed with a vendor bid of $500k and at that point all interest stopped.
Wonder how long it will be before things start to come a bit more into alignment if sellers will start realising they are not going to get as much as they would have 6 months ago and things start to move again.
Inner Sydney is a funny one compared to anywhere else in Australia. You will find that most of the property in the lower north shore is owned outright and have little or no loan outstanding on it because they are still owned by the same families that owned it from way back. So an increase in interest rate will have little if no effect there. However, as you move away from the city centre into the suburbs that's where the struggle begins. A lot of the houses in the suburbs have negative equality at the moment.
I think if you're cashed up, you should put your money in a bank account and us the 8%+ interest you'll be getting to pay for the rent on that Mosman house you're renting and the lease on that fast car that you've always wanted. Wait for the prices to drop over the next 12 or more months before buying.
I think if you're cashed up, you should put your money in a bank account and us the 8%+ interest you'll be getting to pay for the rent on that Mosman house you're renting and the lease on that fast car that you've always wanted. Wait for the prices to drop over the next 12 or more months before buying.
had an offer of 850K 6 months ago, turned it down as didn't want to move, now we are ready, not even a sniff at 680! its also becoming far more difficult to get customers to pay up, so much so that I went and got a job, Its not worth all the chasing up of bad debts that we were having to do. Its not been helped lately by 3 months of continuous problems with the Optus network in brissy killing off my business (IT emergencies in the medical industry) with loss of service, loss of messages and generally poor levels of service, and repeated attempts to fix being little more than a PR excuse by them. All in all I am starting to become a real pessemist, having said I've expected this to happen for the last 2 years no mater who got in as it was unsustainable what was going on
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